EMV Standard and Smart Chip cards
What is EMV?
EMV is the global standard for smart card payments and acceptance devices and was named after the original developers, Europay, MasterCard and Visa. EMV refers to smart or chip cards that contain an embedded chip or microprocessor, which provides stronger security features and other capabilities that are not possible with traditional magnetic stripe cards.
Why is EMV important?
EMV provides merchants with increased fraud protection from counterfeit, lost or stolen cards, because the embedded chip is more secure than the traditional magnetic stripe technology. The chip in EMV enabled cards generates a unique one-time code that cannot be replicated by counterfeit cards. EMV has already been adopted in many countries, and the United States is transitioning to EMV, with a key milestone planned for October 2015. At that time, businesses that do not use devices that read chip cards will be liable for any losses resulting from counterfeit card fraud.
Is Intuit planning to enable EMV transactions?
We are committed to helping our customers process payments without interruption through the EMV transition. We already have significant experience with EMV technology, since we launched the first EMV-enabled mobile payment solution, Intuit Pay in the United Kingdom in 2012. In the United States, we are planning on rolling out EMV solutions that make sense for our customers and guiding them through this transition with the smallest possible impact to their business. Some of the upcoming solutions will even include added features, such as Near Field Communication (NFC), which will allow our customers to accept “contactless” payments, such as Apple Pay.
Image of a credit card with an EMV chip
What is the difference between Chip & PIN and Chip & Signature?
Chip & PIN and Chip & Signature are two types of chip cards in the market. Chip & PIN requires a PIN to complete the transaction and any data stolen from the merchant is useless because the transaction data expires after it leaves the Chip & PIN reader. Chip & Signature requires a customer signature to complete the transaction. In the U.S., most card companies are only offering Chip & Signature.
Chip cards may be used in the traditional methods of swipe or key entry, but these transactions will not have the additional security protections provided through EMV card readers.
What does this mean for my business?
If you’re concerned about fraudulent credit card transactions, you may want to get an EMV reader. Using an EMV device to read the microchip will authenticate that the credit card is valid, which reduces your liability for fraudulent transactions.
Some questions to consider in deciding if you need an EMV-compatible reader:
o Do you sell to customers that you don’t know?
o Do you sell expensive items?
o If you accept a fraudulent credit card and can’t collect the funds, would that have a material impact on your business?
What do I need to do?
It’s your choice. You can switch to an EMV card reader. Or, you can do nothing and continue to accept credit cards as you always have, but with increased liability for fraudulent transactions resulting from counterfeit cards.
We’ve been working hard to make sure you’re ready for the EMV transition, and will soon offer a mobile EMV reader for use with the GoPayment App and the QuickBooks App. We will provide more information as soon as it is ready.
Where can I learn more?
QuickBooks Small Business Blog http://quickbooks.intuit.com/r/technology-and-security/infographic-complete-guide-to-emv-migration
Chase, VISA, American Express and EMV Connection also have additional information. Please see below:
Chase Paymentech https://www.chasepaymentech.com/emv_chip_technology.html
American Express https://network.americanexpress.com/en/globalnetwork/emv/
EMV Connection http://www.emv-connection.com/emv-faq/
You may have heard that the United States is transitioning to full adoption of EMV chip-enabled cards to reduce credit card fraud. We wanted to share a bit more about EMV and the options you’ll have to accept EMV cards.
What is EMV?
EMV is the global standard for smart card payments and acceptance devices, named after the developers: Europay, MasterCard, and Visa. EMV microchip-enabled cards provide stronger security and other capabilities not possible with traditional magnetic stripe cards.
Credit card companies are already issuing EMV/chip cards. A special card reader is required to read these EMV chips, but you can still swipe the cards through the same magnetic stripe readers you’re using today. However, to encourage businesses to adopt the more secure technology of EMV/chip cards, a liability shift is going into effect on October 1, 2015. Today, if you run a transaction on a fraudulent card, the bank assumes the loss. Starting in October, if you swipe a fraudulent EMV/chip card with a magnetic stripe reader, you could be liable for that charge.
What this means for you
If you’re concerned about fraudulent credit card transactions, you may want to get an EMV reader. An EMV device reads the microchip embedded in the card and authenticates that the credit card is valid. This reduces your liability for fraudulent transactions.
Some questions to consider:
- Do you sell to customers that you don’t know?
- Do you sell expensive items?
- If you accept a fraudulent credit card and can’t collect the funds, would that have a material impact on your business?
What you need to do
It’s your choice. You can switch to an EMV card reader. Or, you can do nothing and continue to accept credit cards as you always have but with increased liability for fraudulent transactions.
How do I order an EMV reader?
We’ve been working hard to make sure you’re ready for the EMV transition, and will soon offer a mobile EMV reader for use with the GoPayment App and the QuickBooks App.
The cost for the reader is $30. You won’t be charged until the reader ships.
What if I have questions?
We’ve answered many questions about EMV in our online support center.